Oil surges 4 percent on strong jobs growth

AP News
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Posted: Aug 03, 2012 7:53 AM
Oil surges 4 percent on strong jobs growth

NEW YORK (AP) — The price of oil is up about 4 percent after the government reported a surge in jobs growth last month.

Benchmark U.S. crude rose $3.57 to $90.70 per barrel in New York. Brent crude climbed $2.62, 2.5 percent, to $108.52 per barrel in London.

Prices jumped after the government said U.S. employers added 163,000 jobs in July. Last month's hiring was the best since February, though it wasn't enough to drive down the unemployment rate.

Prices for oil and gasoline tend to rise on signs of strength in the economy, which increases energy demand.

Retail gasoline prices rose 3.3 cents to a national average of $3.567 per gallon. Gasoline prices have jumped by about 24 cents per gallon since the beginning of July.